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PAE YPAE PAE = 6,000 75 PAE 5,000 75Y PAE 4,000 757 6.000 5,000 4.000 45 18 20 24 (000) Output Refer to the figure

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PAE YPAE PAE = 6,000 75 PAE 5,000 75Y PAE 4,000 757 6.000 5,000 4.000 45 18 20 24 (000) Output Refer to the figure above. Based on the figure, if the economy is in short-run equilibrium with an output equal to 24,000, then there is a in government spending would return the economy to potential output (Y). gap and a Select one: O a. recessionary; 4,000 increase O b.recessionary; 1,000 increase c. expansionary: 1,000 decrease O d. expansionary; 4,000 decrease

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